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Difference Between Mining Machines and Mining Farms (Difference Between Mining Farms and Mining Pools)

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What is the difference between mining machines and mining farms? What is the dif

Difference Between Mining Machines and Mining Farms (Difference Between Mining Farms and Mining Pools)

What is the difference between mining machines and mining farms? What is the difference between mining machines and mining farms?

The essence of mining machines is actually computer systems that are responsible for mining digital currencies such as Bitcoin. In the Bitcoin network, the Proof of Work (PoW) algorithm ensures its security by consuming a large amount of electricity. Therefore, in order to obtain sufficient power for mining, dedicated integrated circuits (ASICs) are used for mining cryptocurrencies or virtual commodities. When a new device runs for a period of time, it needs to restart new ASICs to improve computing power. However, as more and more users join the mining field, this complex technology has also developed.

There are currently three main types of mining machines on the market: ASIC chips, GPUs, and ordinary graphics cards. These models are specifically designed for computational tasks and belong to the semiconductor series of products manufactured by Bitmain. The most common one is the A8 mining machine, which has a cluster of 100,000 S19ProASIC servers. According to data from the Ant Pool as of December 28, 2020, its share of the total network computing power reached about 65.3%, ranking second; the Shenma M30 mining machine (using P2P mode), Shenma T17, and Shenma M20 series are also in a leading position. In addition, according to statistics from Bitinfocharts, Bitcoin’s single-week computing power has increased by more than 100 EH/s, approaching the highest level in 2017. At the beginning of 2018, the price of BTC dropped from around $32,000 to around $30,000, but it still set a new historical high. Although the price of Bitcoin has risen rapidly, the prices of other currencies have fallen significantly. For example, the increase in BCH and LTC reached 75% and 55% respectively. (Note: “big cake” is not the stock market)If you want to learn more about “Xiaoniu” mining farms, you can refer to the “Bitcoin Mining Investment Strategy”.

Difference Between Mining Farms and Mining Pools

Mining farms and mining pools are two completely different concepts.

In the operation of the Bitcoin network, there are two types of miners (i.e., ordinary users) providing power. The first case is to obtain rewards through computing power competition, and the second case is to obtain income in the form of “rental”. The equipment in mining farms is operated and maintained by professional technicians.

The essence of a mining farm is a centralized institution that is responsible for tracking, recording, and processing the entire network process of transactions. “Farm” means to place the hardware of mining machines in one place, allowing customers to trade anytime, anywhere. They said: “If a person wants to do digital asset investment, they need a dedicated company that can give themselves a bill. And when you want to invest a sum of money, you need to find a management team of a company.” Therefore, “mining pool”.

Of course, this is just a simple comparison of the differences between the two.1. A mining pool refers to a fixed amount of network capacity set for a specific target.2. A mining pool is a data storage system distributed on a distributed computer that allocates all participating computing power to designated nodes. Mining companies usually use these resources to establish their own data business processes.For example:1. Depending on the user’s choice, you can decide whether to purchase a mining machine and pay the fees yourself.2. You can also order servers or hosting solutions from any other service provider. If you want to use the solutions provided by cloud service providers to realize your business model, you should cooperate with them.3. “Mining pool” is based on selling mining machines and all the energy costs required by service providers at a lower price.In addition, since there is a relationship between mining pools, their connections are also interconnected. Because mining pool operators generally only charge a certain amount of electricity fees as operating expenses. Therefore, we call it a “mining farm”. However, considering that many people in the cryptocurrency industry are unwilling to spend money to buy machines, in most cases, miners may pay directly to miners instead of investing them in mining pools. “Mining pool” refers to an entity that provides computing power, which relies on a strong computing power infrastructure to support more efficient calculations and improve efficiency.

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